Capital Product Partners L.P. Announces Second Quarter 2011 Financial Results
The Partnership's net income for the quarter ended
Operating surplus for the quarter ended
Revenues for the second quarter of 2011 were
Total operating expenses for the second quarter of 2011 were
Net interest expense and finance cost for the second quarter of 2011 amounted to
As of
Fleet Developments
The charter of M/T Agisilaos (2006 Built, Hyundai Mipo 36,760 DWT, Ice Class 1A) with Capital Maritime was extended for an additional period of twelve months (+/-30 days). The twelve month extension is fixed at a gross daily charter rate of
The charter of M/T Arionas (2006 Built, Hyundai Mipo 36,725 DWT, Ice Class 1A) with Capital Maritime was extended for an additional period of twelve months (+/-30 days). The twelve month extension is fixed at a gross daily charter rate of
Market Commentary
Overall, in the second quarter 2011 the product tanker spot market saw a marked improvement, when compared to the second quarter of 2010, due to increased demand in the transatlantic and
The period charter market remained robust with increased activity for both shorter and longer term employment.
A number of recent modern product tanker sales reaffirmed an increase in asset prices, when compared to the same period last year, reflecting owners' expectations for an improving market rate environment.
The product tanker order book continued to experience substantial slippage into 2011, as less than 50% of the expected
The crude tanker market remained soft compared to the same quarter last year, due to increased tonnage availability in most trading areas and high refinery outages throughout the second quarter of 2011.
Quarterly Cash Distribution
On
M/V 'Cape Agamemnon' Acquisition
On
As previously announced, as part of the consideration for the acquisition of the M/V Cape Agamemnon, the Partnership issued 7,100,000 CPLP common and GP units to Capital Maritime based on a
The purchase value of
Merger Agreement Update
As announced on
Management Commentary
Mr.
Conference Call and Webcast
Today,
Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(866) 819-7111 (from the US), 0(800) 953-0329 (from the
A replay of the conference call will be available until
Slides and audio webcast:
The slide presentation accompanying the conference call will be available on the Partnership's website at www.capitalpplp.com. An audio webcast of the call will also be accessible on the website. The relevant links will be found in the Investor Relations section of the website.
Forward-Looking Statements:
The statements in this press release that are not historical facts, including our expectations regarding the completion of the merger with Crude Carriers, developments in the markets, our expectations regarding the results of the merger and the acquisition of the
About
For more information about the Partnership, please visit our website: www.capitalpplp.com.
CPLP-F
Capital Product Partners L.P. Unaudited Condensed Consolidated Statements of Income (In thousands of United States Dollars, except number of units and earnings per unit) For the three-month For the six-month period period ended June 30, ended June 30, 2011 2010 2011 2010 ------------------------ ----------- ----------- ----------- ----------- Revenues $ 22,484 $ 29,495 $ 43,909 $ 61,828 Revenues - related party 5,368 2,259 11,597 3,411 Total Revenues 27,852 31,754 55,506 65,239 Expenses: Voyage expenses 1,041 2,411 1,776 4,204 Vessel operating expenses - related party 7,854 7,254 14,903 14,426 Vessel operating expenses 79 552 79 1,034 General and administrative expenses 3,903 632 5,195 1,262 Depreciation 8,233 7,720 16,350 15,431 ------------------------ ----------- ----------- ----------- ----------- Operating income 6,742 13,185 17,203 28,882 ------------------------ ----------- ----------- ----------- ----------- Other income (expense), net: Interest expense and finance cost (8,244) (8,265) (16,469) (16,523) Gain from bargain purchase 16,526 - 16,526 - Interest and other income 123 217 281 559 ------------------------ ----------- ----------- ----------- ----------- Total other income / (expense), net 8,405 (8,048) 338 (15,964) ------------------------ ----------- ----------- ----------- ----------- Net income 15,147 5,137 17,541 12,918 ------------------------ ----------- ----------- ----------- ----------- Less: Net loss/(income) attributable to CMTC operations - 23 - (983) ------------------------ ----------- ----------- ----------- ----------- Partnership's net income $ 15,147 $ 5,160 $ 17,541 $ 11,935 ------------------------ ----------- ----------- ----------- -----------General Partner's interest in Partnership's net income $ 303 $ 103 $ 351 $ 239 Limited Partners' interest in Partnership's net income $ 14,844 $ 5,057 $ 17,190 $ 11,696 Net income per: Common units (basic and diluted) 0.38 0.16 0.44 0.41 Weighted-average units outstanding: Common units (basic and diluted) 38,756,675 31,098,729 37,958,265 29,104,705Capital Product Partners L.P. Unaudited Condensed Consolidated Balance Sheets (In thousands of United States Dollars) As of As of June December Assets 30, 2011 31, 2010 Current assets Cash and cash equivalents $ 37,868 $ 32,471 Trade accounts receivable 2,380 2,305 Due from related parties 3 2 Prepayments and other assets 458 278 Inventory 272 83 ------------------------------------------------ ------------- ------------- Total current assets 40,981 35,139 ------------------------------------------------ ------------- ------------- Fixed assets Vessels, net 743,008 707,339 ------------------------------------------------ ------------- ------------- Total fixed assets 743,008 707,339 ------------------------------------------------ ------------- ------------- Other non-current assets Above market acquired charters 55,075 8,062 Deferred charges, net 2,435 2,462 Restricted cash 5,500 5,250 ------------------------------------------------ ------------- ------------- Total non-current assets 806,018 723,113 ------------------------------------------------ ------------- ------------- Total assets $ 846,999 $ 758,252 ------------------------------------------------ ------------- ------------- Liabilities and partners' capital Current liabilities Current portion of long-term debt $ -- $ -- Trade accounts payable 2,215 526 Due to related parties 5,782 4,544 Accrued liabilities 1,110 898 Deferred revenue 4,106 3,207 ------------------------------------------------ ------------- ------------- Total current liabilities 13,213 9,175 ------------------------------------------------ ------------- ------------- Long-term liabilities Long-term debt 499,000 474,000 Deferred revenue 3,301 2,812 Derivative instruments 23,877 32,505 ------------------------------------------------ ------------- ------------- Total long-term liabilities 526,178 509,317 ------------------------------------------------ ------------- ------------- Total liabilities 539,391 518,492 ------------------------------------------------ ------------- ------------- Commitments and contingencies Partners' capital 307,608 239,760 ------------------------------------------------ ------------- ------------- Total liabilities and partners' capital $ 846,999 $ 758,252 ------------------------------------------------ ------------- -------------Capital Product Partners L.P. Unaudited Condensed Consolidated Statements of Cash Flows (In thousands of United States Dollars) For the six-month period ended June 30, 2011 2010 Cash flows from operating activities: Net income $ 17,541 $ 12,918 Adjustments to reconcile net income to net cash provided by operating activities: Vessel depreciation 16,350 15,431 Gain from bargain purchase (16,526) Amortization of deferred charges 302 280 Amortization of above market acquired time and bare- boat charter 1,538 -- Equity compensation expense 1,159 -- Changes in operating assets and liabilities: Trade accounts receivable (75) (2,775) Due from related parties (1) 8 Prepayments and other assets (180) 131 Inventory (189) (115) Trade accounts payable 1,689 288 Due to related parties 1,048 858 Accrued liabilities 22 (683) Deferred revenue 1,388 (235) ------------------------------------------------------ --------- ---------- Net cash provided by operating activities 24,066 26,106 ------------------------------------------------------ --------- ---------- Cash flows from investing activities: Vessel acquisitions (26,634) (64,561) Purchase of short-term investments -- (77,229) Maturity of short-term investments -- 91,519 Increase in restricted cash (250) (500) Reclassification of short term investment to restricted cash -- 500 ------------------------------------------------------ --------- ---------- Net cash (used in) investing activities (26,884) (50,271) ------------------------------------------------------ --------- ---------- Cash flows from financing activities: Proceeds from issuance of long-term debt 25,000 -- Proceeds from issuance of Partnership units -- 54,075 Expenses paid for issuance of Partnership units -- (320) Payments of related party debt/financing -- (1,556) Proceeds from issuance of general partner units 1,470 -- Loan issuance costs (250) -- Excess of purchase price over book value of vessels acquired from entity under common control -- (10,449) Distributions paid (18,005) (17,523) ------------------------------------------------------ --------- ---------- Net cash provided by financing activities 8,215 24,227 ------------------------------------------------------ --------- ---------- Net increase in cash and cash equivalents 5,397 62 Cash and cash equivalents at beginning of period 32,471 3,552 ------------------------------------------------------ --------- ---------- Cash and cash equivalents at end of period $ 37,868 $ 3,614 ------------------------------------------------------ --------- ---------- Supplemental cash flow information Cash paid for interest $ 15,804 $ 15,905 Non-cash activities Units issued to acquire the vessel owning company of the M/V Cape Agamemnon 57,056 -- Acquisition of above market time charter 48,551 -- Capital expenditures included in liabilities 529 -- Unpaid loan issuance costs 26 -- Reduction in deferred offering expenses -- 55 Net liabilities assumed by CMTC upon vessel contribution to the Partnership -- 31,844
Appendix A - Reconciliation of Non-GAAP Financial Measure
(In thousands of U.S. dollars)
Description of Non-GAAP Financial Measure - Operating Surplus
Operating Surplus represents net income adjusted for non cash items such as depreciation and amortization expense, unearned revenue and unrealized gain and losses. Replacement capital expenditures represent those capital expenditures required to maintain over the long term the operating capacity of, or the revenue generated by, the Partnership's capital assets. Operating Surplus is a quantitative standard used in the publicly-traded partnership investment community to assist in evaluating a partnership's ability to make quarterly cash distributions. Operating Surplus is not required by accounting principles generally accepted in
Reconciliation of Non-GAAP Financial Measure - For the three-month
Operating Surplus period ended June 30,
2011
Net income $ 15,147
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 8,947
Deferred revenue 1,223
Gain on bargain purchase (16,526)
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NET CASH PROVIDED BY OPERATING ACTIVITIES 8,791
----------------------------------------------------- ---------------------
Replacement Capital Expenditures (3,042)
----------------------------------------------------- ---------------------
OPERATING SURPLUS 5,749
----------------------------------------------------- ---------------------
Reduction on recommended reserves 4,904
----------------------------------------------------- ---------------------
AVAILABLE CASH $ 10,653
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Contact Details:Capital GP L.L.C. Ioannis Lazaridis CEO and CFO +30 (210) 4584 950 E-mail: i.lazaridis@capitalpplp.comCapital Maritime & Trading Corp. Jerry Kalogiratos Finance Director +30 (210) 4584 950 j.kalogiratos@capitalpplp.com Investor Relations / MediaMatthew Abenante Capital Link, Inc. (New York ) Tel. +1-212-661-7566 E-mail: cplp@capitallink.com
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